Eldenminaj
2021-09-05

Why I am slightly worried on Alibaba?

$Alibaba(BABA)$


When I first invested in Alibaba, I was aware of the risk assosicated with VIE, which is why I only Invested 6% of my portfolio in it. 

If Alibaba goes to 0, I may lose at max 6% of my portfolio. Which is why risk management and diversification is extremely important. 


But here are my reasons why Alibaba will contonue to thrive after this "Tech clamp-down"


●Alibaba's earnings has grown at a CAGR of 30.4% in the past 5 years , EPS has grown more than 300% in 5 years and free cash flow has been enormous.


●Financial health of the company is extremely well. The company has more cash (484B) then debt (150B) And the debt to equity ratio is so low at 13.6%.


Comments by me:

Companys balance sheet is extremely healthy and revenue has been thirving. Political Crisis aside, the company is doing really well. I believe once this whole ordeal dies down, the company will continue to thrive and the stock can be valued all the way up to 300-500 USD. 


I Agree there is some risk, but with the potential and the undervalued value BABA has now, I feel tje risk is worth it. Make sure to buy! 

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • oklebs
    2021-09-06
    oklebs
    Baba has strong fundamentals, it’s trading at a good price to buy in
  • 托马司机
    2021-09-06
    托马司机
    对于好的公司 每每下跌 都是买入机会和时机
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